In: Statistics and Probability
In a recent year, a poll asked 2360 random adult citizens of a large country how they rated economic conditions. In the poll, 28% rated the economy as Excellent/Good. A recent media outlet claimed that the percentage of citizens who felt the economy was in Excellent/Good shape was 25%. Does the poll support this claim? a) Test the appropriate hypothesis. Find a 99% confidence interval for the proportion of adults who rated the economy as Excellent/Good. Check conditions. b) Does your confidence interval provide evidence to support the claim? c) What is the significance level of the test in b? Explain. a) Let p be the proportion of adult citizens who felt the economy was in Excellent/Good shape. What are the null and alternative hypotheses for the test? A. H0: pequals0.28 vs. HA: pless than0.28 B. H0: pequals0.25 vs. HA: pnot equals0.25 C. H0: pequals0.28 vs. HA: pnot equals0.28 D. H0: pequals0.25 vs. HA: pgreater than0.25 Check the conditions. Which of the following conditions are satisfied? Select all that apply. A. Less than 10% of the population was sampled. B. The data are independent. C. There are more than 10 "successes" and 10 "failures." D. The sample is random. Find a 99% confidence interval for the proportion of adults who rated the economy as Excellent/Good. Select the correct choice below and fill in any answer boxes within your choice. A. left parenthesis nothing comma nothing right parenthesis (Round to three decimal places as needed.) B. The conditions of a confidence interval are not satisfied. b) Does your confidence interval provide evidence to support the claim? A. Yes. Since pequals0.25 is within the interval, there is evidence to support the claim. B. Yes. Since pequals0.25 is not within the interval, there is evidence to support the claim. C. No. Since pequals0.25 is within the interval, there is evidence that the proportion is not p equals 0.25. D. No. Since pequals0.25 is not within the interval, there is evidence that the proportion is not p equals 0.25. E. The confidence interval cannot be found because not all of the conditions are satisfied. c) The significance level is alphaequals 34, because the test is a two -sided test and is based on a 99% confidence interval.
Here we have given that,
n=Total number of adults citizens of a large country =2360
Now, we estimate the sample proportion as
=sample proportion of adults citizens of a large country rated the economy as excellent/good
=28% i.e. 0.28
p=populaiton proportion of the citizens who felt the economy was in excellent/good shape=25% i.e. 0.25
(a)
The below-mentioned conditions are satisfied for constructing the CI,
The level of significance is as follows,
c=confidence level =0.99
=level of significance= 1-c=1-0.99=0.01
Claim: To check whether the populaiton percentage of citizens who felt the economy was in Excellent/Good shape was 25%.
The null and alternative hypothesis is as follows,
Versus
i.e. option B is correct.
Now we want to find the 99% confidence interval for the population proportion of the citizens who felt the economy was in excellent/good shape p
The formula for CI is as follows,
Now, first, we can find two-tailed Z-critical value
This 99% CI is two-tailed.
c=confidence level =0.99
=level of significance= 1-c=1-0.99=0.01
= Zcritical (0.005)
=2.58 Using EXCEL software =ABS(NORMSINV(probability =0.005))
The 99% confidence interval is,
The 99% confidence interval for p is (0.256, 0.304)
Interpretation:
Here we can say that we are 99% confident that the populaiton proportion of the citizens who felt the economy was in excellent/good shape will fall inside this interval.
Conclusion regarding the claim (Hypothesis):
No, 95% confidence interval support the claim, Since p = 0.25 is not within the interval, there is evidence that the proportion is not equal to 0.25.
i.e. here option D is correct.